What is the purpose of punitive damages?

Punitive damages are intended specifically to punish a wrongdoer for particularly egregious or malicious behavior and to deter similar conduct in the future. This is distinct from compensatory damages, which aim to reimburse victims for actual financial losses and expenses incurred as a result of the wrongdoer's actions, such as medical bills or rehabilitation costs.

The purpose of punitive damages is to send a clear message that certain behaviors, especially those that are intentional or grossly negligent, are unacceptable and will result in severe penalties. By imposing these damages, the legal system seeks to promote accountability and discourage individuals and organizations from engaging in harmful conduct. In essence, punitive damages are about maintaining social order and ensuring that justice is served beyond mere compensation.